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TMI Blog1989 (12) TMI 197X X X X Extracts X X X X X X X X Extracts X X X X ..... manufactured tobacco. They were purchasing it and selling it as such. The appellants were also dealing in stems and stalks of tobacco which were also a variety of unmanufactured tobacco falling under the old tariff item 4.1(8). They used to purchase them and sell it to customers and after sale if the customer so desired, used to grind them in their chakki on payment of charges at the rate of 50 paise per kg. 2. It was his submission that in the tariff as it stood at the relevant time i.e. during 1986-87 to which both these appeals belong, unmanufactured tobacco carried nil rate of duty and dealers in unmanufactured tobacco were not required to take out any licence and were not subject to excise control and were not required to maintai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the new tariff as it stood at the relevant time does not distinguish between dust and powder and such dust or powder which arises as a result of a process of manufacture attracted duty under 2404.90. 6. The learned DR also stated that milling and grinding etc. constituted a process of manufacture in the case of tobacco and, therefore, the powder resulting therefrom by whatever name called attracted 2404.90. 7. The learned Counsel stated that the new tariff as it stood at the relevant time does not mention tobacco powder as such and in any eventuality by merely crushing the stalks into the form of dust there is no change in chemical composition or character and therefore, the item remains the same before and after crushing. 8. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ergone a change. 12. The relevant portion of amended Section 2(f) of the Central Excise Salt Act reads as follows:- Manufacture includes any process incidental or ancillary to the completion of a manufactured product; and (i) in relation to tobacco, includes the preparation of cigarettes, cigars, cheroots, biris, cigarettes or pipe or hookah tobacco, chewing tobacco or snuff; (ia) in relation to manufactured tobacco, includes the labelling or re-labelling of containers and repacking from bulk packs to retail packs or the adoption of any other treatment to render the product marketable to the consumer;)" 12.1 Similarly, the tariff as it stood at the relevant time incorporates, inter alia, the following in relation to tobacco :- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evident from relevant portion of the Tobacco Manual (para I-B of Chapter III) and Tariff Item No. 4.15 of the old tariff and also the new tariff. However, the dust of tobacco arising in the course of conversion of raw tobacco into cut tobacco appears to attract 24.04.90 but was exempted as per notification No. 356/86 as amended by 24/87 and to that extent the new tariff alters the position, but the rate of duty remains nil. 17. In as far as stalks of tobacco are concerned, they continued in the category of unmanufactured tobacco. (Only cut tobacco falls under 24.04.13). 18. It is also significant that even in case of powders and others falling under 24.04 (under various permutation combinations and names/terms mentioned in the tariff) m ..... X X X X Extracts X X X X X X X X Extracts X X X X
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